Big success of tirzepatide

Thanks to strong sales of tirzepatide, in the first quarter of 2024 financial report, Lilly's revenue increased by 26% year-on-year, reaching $8.77 billion. Lilly expects sales to reach $42.4 billion to $43.6 billion in 2024. In addition, the treatment of MASH with telposide, improvement of indications for obstructive sleep apnea, and the development of three target GLP-1 drugs by Eli Lilly have all driven LY's stock price up.

Lilly's efforts in other areas have also given the market and investors more confidence in Lilly's stock

Eli Lilly's next-generation therapy, ritagliptin, has added a third target, the glucagon receptor, which may ultimately become a positive for the Eli Lilly stock. In theory, this can improve the weight loss effect. Over the course of 24 weeks, overweight or obese patients who received treatment with ritagliptin lost 17.5% of their weight. Within 48 weeks, the patient lost 24.2% of their weight.

Lilly is also testing Mounjaro's ability to improve incidence rate and mortality in obese or overweight patients. The research results are expected to be released by the end of 2027.

Lilly has just acquired Versanis Bio, a drug that can improve fat loss while limiting muscle mass loss associated with GLP-1 drugs. In addition, Lilly is collaborating with Verve Therapeutics (VERV) to test three potential gene editing methods to permanently lower cholesterol.

What is the expected annual return of Lilly Company in 2024?

In 2023, Lilly's earnings per share were $6.32 (excluding certain items), with sales of $34.12 billion. Profit decreased by 20.4%, but higher than expected at $6.23. Sales increased by 20%, exceeding expectations of $33.65 billion.

After the release of the first quarter report, Lilly expects its sales to reach $42.4 billion to $43.6 billion in 2024. Lilly plans to increase the production of diabetes and weight loss drugs later this year. The company also expects adjusted earnings per share to be between $13.50 and $14. Both indicators were higher than analysts' expectations.

Wall Street expects Mounjaro's sales to reach $10.98 billion in 2024, a year-on-year increase of over 113%. The sales of Zepbound are expected to reach 4.53 billion US dollars. By 2029, analysts predict that the sales of these two drugs will reach $29.95 billion and $20.33 billion respectively.